This week, Uganda’s Cabinet adopted a resolution to impose retaliatory tariffs against Kenya, taking their simmering trade war a notch higher. The decision reflected a radical shift, or rather a loss of patience by Kampala, whose responses in this old trade war have been rather meek.
Lauded by the domestic manufacturing sector, the Ugandan action reflects a degree of frustration. Hemmed in by Covid-19 disruptions, Uganda, which has suffered multiple revenue deficits during the past two quarters, is also witnessing a rising trade deficit. A Kenyan delegation that was supposed to visit the country to verify its capacity to manufacture surpluses of milk and sugar aborted its mission.
